Northwestern Mutual Wealth Management Co. Decreases Stock Holdings in Lithia Motors, Inc. $LAD

Key Points

• Northwestern Mutual Wealth Management Co. significantly reduced its stake in Lithia Motors by 89.1%, holding only 1,148 shares worth $337,000 at the end of the first quarter.
• Several other institutional investors have increased their positions in Lithia Motors, with Steadfast Capital Management LP raising its stake by 137.8% to hold over 460,000 shares.
• Lithia Motors reported better-than-expected earnings of $10.24 per share for the last quarter and has authorized a $750 million stock repurchase program, indicating confidence in its stock value.

Northwestern Mutual Wealth Management Co. lowered its stake in shares of Lithia Motors, Inc. (NYSE:LAD - Free Report) by 89.1% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 1,148 shares of the company's stock after selling 9,356 shares during the period. Northwestern Mutual Wealth Management Co.'s holdings in Lithia Motors were worth $337,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also modified their holdings of the company. Abrams Capital Management L.P. increased its stake in Lithia Motors by 2.2% in the first quarter. Abrams Capital Management L.P. now owns 2,444,678 shares of the company's stock valued at $717,611,000 after purchasing an additional 53,490 shares in the last quarter. Dimensional Fund Advisors LP boosted its stake in Lithia Motors by 6.1% during the first quarter. Dimensional Fund Advisors LP now owns 1,267,519 shares of the company's stock worth $372,053,000 after acquiring an additional 72,980 shares in the last quarter. Steadfast Capital Management LP raised its holdings in shares of Lithia Motors by 137.8% in the fourth quarter. Steadfast Capital Management LP now owns 460,298 shares of the company's stock valued at $164,524,000 after purchasing an additional 266,715 shares during the last quarter. Madison Asset Management LLC increased its stake in shares of Lithia Motors by 9.9% in the first quarter. Madison Asset Management LLC now owns 280,456 shares of the company's stock worth $82,325,000 after purchasing an additional 25,331 shares in the last quarter. Finally, Northern Trust Corp lifted its holdings in shares of Lithia Motors by 4.4% in the 1st quarter. Northern Trust Corp now owns 268,268 shares of the company's stock worth $78,747,000 after acquiring an additional 11,289 shares during the last quarter.

Insider Buying and Selling at Lithia Motors

In other Lithia Motors news, Director Shauna Mcintyre sold 256 shares of the firm's stock in a transaction dated Thursday, July 31st. The shares were sold at an average price of $293.05, for a total transaction of $75,020.80. Following the completion of the transaction, the director owned 1,376 shares in the company, valued at $403,236.80. This trade represents a 15.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders own 0.87% of the company's stock.

Lithia Motors Stock Down 0.2%

Shares of NYSE:LAD traded down $0.79 during midday trading on Monday, reaching $340.29. The company's stock had a trading volume of 152,230 shares, compared to its average volume of 335,406. The company has a quick ratio of 0.29, a current ratio of 1.22 and a debt-to-equity ratio of 1.24. The firm has a market capitalization of $8.72 billion, a P/E ratio of 10.11, a PEG ratio of 0.53 and a beta of 1.31. The firm has a 50 day moving average of $320.73 and a 200-day moving average of $313.55. Lithia Motors, Inc. has a 12-month low of $255.32 and a 12-month high of $405.67.

Lithia Motors (NYSE:LAD - Get Free Report) last issued its quarterly earnings results on Tuesday, July 29th. The company reported $10.24 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $9.78 by $0.46. The company had revenue of $9.58 billion during the quarter, compared to the consensus estimate of $9.56 billion. Lithia Motors had a return on equity of 13.21% and a net margin of 2.39%. On average, research analysts anticipate that Lithia Motors, Inc. will post 34.45 earnings per share for the current year.

Lithia Motors announced that its board has approved a stock buyback plan on Tuesday, August 26th that permits the company to repurchase $750.00 million in shares. This repurchase authorization permits the company to reacquire up to 9% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its stock is undervalued.

Lithia Motors Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were issued a $0.55 dividend. The ex-dividend date of this dividend was Friday, August 8th. This represents a $2.20 dividend on an annualized basis and a yield of 0.6%. Lithia Motors's dividend payout ratio is currently 6.52%.

Analyst Ratings Changes

LAD has been the subject of a number of recent research reports. JPMorgan Chase & Co. cut their price objective on Lithia Motors from $335.00 to $315.00 and set an "overweight" rating for the company in a research note on Tuesday, August 5th. The Goldman Sachs Group assumed coverage on Lithia Motors in a research report on Tuesday, June 3rd. They set a "neutral" rating and a $340.00 price objective for the company. Bank of America lifted their target price on Lithia Motors from $430.00 to $500.00 and gave the stock a "buy" rating in a research report on Monday, June 16th. Jefferies Financial Group assumed coverage on shares of Lithia Motors in a research note on Thursday. They set a "buy" rating and a $400.00 target price on the stock. Finally, Citigroup raised their price objective on shares of Lithia Motors from $378.00 to $383.00 and gave the stock a "buy" rating in a report on Tuesday, August 5th. Eight equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $380.91.

About Lithia Motors

Lithia Motors, Inc operates as an automotive retailer worldwide. It operates in two segments, Vehicle Operations and Financing Operations. The company's Vehicle Operations segment sells new and used vehicles; provides parts, repair, and maintenance services; vehicle finance; and insurance products. Its Financing Operations segment provides financing to customers buying and leasing retail vehicles.